BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1500| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1500 Author: Lieu (D) Amended: 7/14/09 in Senate Vote: 21 SENATE TRANSPORTATION & HOUSING COMM : 9-1, 7/7/09 AYES: Lowenthal, Ashburn, DeSaulnier, Harman, Hollingsworth, Kehoe, Pavley, Simitian, Wolk NOES: Huff NO VOTE RECORDED: Oropeza SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 46-31, 6/3/09 - See last page for vote SUBJECT : High-occupancy lanes: low-emission vehicles SOURCE : California Natural Gas Vehicle Coalition DIGEST : This bill extends the sunset date, from January 1, 2011 to January 1, 2014, on the law that allows certain low-emission vehicles to access High-occupancy vehicle (HOV) lanes. ANALYSIS : In 1999, the Legislature passed and the governor signed AB 71 (Cunneen), Chapter 330, to allow the following low-emission vehicles to access HOV lanes, regardless of vehicle occupancy: 1.A vehicle that meets the state's super ultra-low emission CONTINUED AB 1500 Page 2 vehicle (SULEV) standard for exhaust emissions and the federal inherently low-emission vehicle (ILEV) standard for evaporative emissions (e.g., all-electric vehicles such as Tesla or the RAV 4 EV). 2.A vehicle that was produced during the 2004 model year or earlier that meets the state's ultra-low emission vehicle (ULEV) standard for exhaust emissions and the federal ILEV standard (e.g., Honda Civic CNG). To differentiate these vehicles, the Department of Motor Vehicles (DMV) issues white stickers to be affixed on the vehicle. There is no limit on the number of these vehicles that may be issued white stickers. To date, DMV has issued 9,099 sets of white stickers. White-stickered vehicles are eligible for free or reduce-passage toll rates on Bay Area toll bridges, regardless of their occupancy, if those rates are offered to high-occupancy vehicles. In 2004, AB 2628 (Pavley), Chapter 725, allowed the following hybrid vehicles to access HOV lanes, pending approval by the federal government: 1.A hybrid vehicle or an alternative fuel vehicle that meets the state's advanced technology partial zero-emission standard (AT PZEV) standard for criteria pollutant emissions and has a 45 miles per gallon (mpg) or greater fuel economy highway rating. 2.A hybrid vehicle that was produced during the 2004 model year or earlier that has a 45 mpg or greater fuel economy highway rating and meets the state's ULEV, SULEV, or partial zero-emission vehicle (PZEV) standards. The DMV issues these vehicles yellow stickers. The number of vehicles that may be issued yellow stickers was ultimately capped at 85,000, a limit which was reached in 2007. Yellow-stickered vehicles are not eligible for free or reduced-passage toll rates on Bay Area toll bridges. The authority to access HOV lanes expires for all four types of vehicles on January 1, 2011. Existing law requires the California Department of CONTINUED AB 1500 Page 3 Transportation (Caltrans) to assess, according to a specified timeframe, whether HOV lanes have experienced significant degradation due to access by hybrid vehicles with yellow stickers. Caltrans is authorized to restrict single-occupant vehicles with either white or yellow stickers from accessing segments of HOV lanes during periods of peak congestion if it finds that the lane has a specified level of service, the operation of these vehicles will significantly increase congestion, and it is not feasible to alleviate congestion by other means. This bill extends the sunset date, from January 1, 2011 to January 1, 2014, on the law that requires DMV to issue white stickers to eligible vehicles so that those vehicles may access HOV lanes. Background The Federal Highways Administration (FHWA) granted conditional approval to allow hybrid vehicles in HOV lanes, as authorized by AB 2628 (Pavley), in April 2006. FHWA required Caltrans to monitor and report on the performance of HOV lanes and to take steps to address degradation (i.e., congestion), if necessary. In July 2006, after 50,000 yellow stickers were issued to hybrid vehicles under the program, Caltrans assessed congestion in the HOV lanes using both the state and federal standards of performance. Under the state standard, Caltrans found that the number of congested HOV lane segments increased from 7 to 12 percent. Under the federal standard, Caltrans found that approximately 46 percent of HOV lane segments operated under degraded conditions. While the increased congestion could not be attributed solely to single-occupant hybrid vehicles accessing the lanes, FHWA nonetheless asserted that these vehicles did not have to be the cause of degradation for Caltrans to take action to reduce HOV lane congestion and requested that Caltrans develop a plan for improving the performance of HOV lanes. Caltrans submitted the "California High Occupancy Vehicle Lane Degradation Reduction Plan" to FHWA in August 2007. The plan outlines short- and long-term measures to improve CONTINUED AB 1500 Page 4 HOV lane performance, including increased enforcement, improved system management, infrastructure improvements, public education, and, if necessary, a prohibition of single-occupant hybrid vehicles from accessing the most congested segments of the HOV-lane network. Following the submittal of that plan, Caltrans updated its analysis of HOV lane degradation and submitted a supplemental report to FHWA in September 2008. This updated analysis found that, based on the federal standard, congestion increased on HOV lanes from 46 percent to 54 percent. Given the growth in both population and number of registered vehicles, degradation is only likely to worsen. There is much activity occurring with regard to allowing low-emission vehicles to access HOV lanes. Federal law governing HOV lane access is contained in the transportation act known as SAFETEA-LU, which is set to expire on September 30th of this year. A draft of the new federal transportation bill has just been released and it extends the current access provisions until September 30, 2015. Air quality experts consider the federal ILEV standard outdated, and it is conceivable that the emission standard applicable for HOV lane access may change as the bill is marked up and moves through Congress. Regardless of whether there is a change to the federal standard, California's current standard for allowing hybrids to access HOV lanes is out of sync with the federal law and the United States Environmental Protection Agency has urged Caltrans and the California Air Resources Board to better align its standards with those established in federal law. Finally, in addition to General Motors, Ford and Toyota have been pursuing their own proposals to incentivize specific vehicles by providing HOV lane access. Vehicle technologies are undergoing rapid change and increasingly cleaner vehicles will become available in the coming years. Related Legislation CONTINUED AB 1500 Page 5 SB 535 (Yee), in its current form, extends the sunset date, from January 1, 2011 to January 1, 2015, to allow certain low-emission vehicles to use HOV lanes, regardless of vehicle occupancy, but maintains the January 1, 2011 sunset date for hybrid vehicles. AB 1502 (Eng) extends the sunset date, from January 1, 2011 to January 1, 2017, to allow certain low-emission vehicles to use HOV lanes, regardless of vehicle occupancy, but maintains the January 1, 2011 sunset date for hybrid vehicles. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 8/17/09) California Natural Gas Vehicle Coalition (source) OPPOSITION : (Verified 8/17/09) Alameda County Congestion Management Agency ARGUMENTS IN SUPPORT : According to the author's office, access to HOV lanes by single-occupancy vehicles that meet the federal ILEV standard is an effective way to encourage the purchase and lease of low-polluting alternative fuel vehicles, particularly in heavily urbanized areas where air pollution tends to be the worst and traffic congestion is greatest. The state thus achieves two important and complementary goals: to reduce vehicular air pollution and reduce petroleum consumption. Approximately 25,000 CNG vehicles operate in California, owned by individuals, local governments, and private fleets such as taxi cabs and shuttle vans. Single-occupancy access to HOV lanes is a strong non-monetary incentive for the purchase of low emission, alternative fuel vehicles. ASSEMBLY FLOOR : AYES: Ammiano, Arambula, Beall, Blumenfield, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer, CONTINUED AB 1500 Page 6 Fong, Fuentes, Furutani, Galgiani, Hall, Hayashi, Hernandez, Hill, Huffman, Jones, Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, John A. Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas, Saldana, Swanson, Torlakson, Torres, Torrico, Bass NOES: Adams, Anderson, Bill Berryhill, Tom Berryhill, Blakeslee, Conway, Cook, DeVore, Duvall, Emmerson, Fletcher, Fuller, Gaines, Garrick, Gilmore, Hagman, Harkey, Huber, Jeffries, Knight, Logue, Miller, Nestande, Niello, Nielsen, Silva, Skinner, Smyth, Audra Strickland, Tran, Villines NO VOTE RECORDED: Block, Solorio, Yamada JA:nl 8/18/09 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED